Core Insights - Figma's shares increased by 15% in after-hours trading following strong quarterly results and guidance that exceeded Wall Street expectations [1] - The company reported a 40% year-over-year revenue growth in Q4, with a net loss of $226.6 million, contrasting with a net income of $33.1 million in the same quarter of the previous year [1] Financial Performance - Figma's Q4 revenue was $303.8 million, surpassing the expected $293.15 million [4] - The company anticipates first-quarter revenue between $315 million and $317 million, indicating a 38% growth, while analysts expected $292 million [2] - For 2026, Figma projects adjusted operating income of $100 million to $110 million on revenue of $1.366 billion to $1.374 billion, suggesting a 30% revenue growth against a consensus of $1.29 billion [2] Market Context - Concerns have arisen among investors regarding the impact of generative artificial intelligence on the growth prospects of software companies, with Figma shares down approximately 35% year-to-date [3] - In contrast, the iShares Expanded Tech-Software Sector ETF has decreased by 22%, while the S&P 500 index has gained nearly 1% during the same period [3] Competitive Landscape - Figma's CEO, Dylan Field, acknowledged the increasing competitiveness in the software market, despite the overall growth potential [4]
Figma stock jumps 15% as company sees AI monetization accelerating growth